Latest news with #DIAGEO
Irish Post
6 days ago
- Business
- Irish Post
Trump tariffs expected to cost Guinness parent company 200 million
DIAGEO, the global drinks giant behind Guinness and Johnnie Walker, is facing a tough year shaped by trade tariffs and shifting consumer trends. Despite these challenges, Guinness continues to be a strong performer for the company. The company now expects a $200 million annual hit from US tariffs introduced under President Trump, a jump from the $150 million impact it previously forecast. Diageo says it can absorb around half of the blow through supply chain improvements and inventory management. At the same time, profits have taken a hit. Operating profit fell nearly 28% in the year to June, and shares have dropped more than 25% in 2025, making Diageo one of the FTSE 100's worst performers. The company also continues to feel the effects of changing drinking habits, with younger consumers drinking less and many switching to cheaper options amid economic pressures. The departure of CEO Debra Crew last month has added to investor unease. She stepped down after just over a year in the role, following a series of underwhelming results. Nik Jhangiani, Diageo's CFO, is serving as interim CEO and has expanded the company's cost-saving plan from £500 million to £625 million over three years. He stated the cuts won't focus solely on reducing headcount. Amid the turbulence, Guinness remains a bright spot. UK sales rose 6.7%, although supply issues limited further gains. Don Julio tequila and Crown Royal Blackberry have also shown strong demand. Diageo expects organic sales growth to remain around 1.7%, matching last year's performance. The company is still searching for a permanent CEO to lead a turnaround as it faces mounting pressure to stabilise operations and restore shareholder confidence. See More: Donald Trump, Guinness, Tariffs, US Trade Tariffs
Irish Post
21-05-2025
- Business
- Irish Post
Guinness to open new Covent Garden location while cutting costs elsewhere
DIAGEO, the parent company of Guinness, has announced a $500 million cost-cutting plan along with significant asset disposals by 2028. Amidst these measures, the Guinness brand is highlighted as a key element for future growth by their owner. Diageo, the global drinks giant behind Johnnie Walker, Tanqueray and Guinness, is operating in difficult times for the global drinks industry. With falling sales, investor anxiety, and mounting debt, the company is launching a financial reset. According to CFO Nik Jhangiani, the savings will come from streamlining trade investments, advertising, and supply chains, with an eye toward achieving $3 billion in annual free cash flow by 2026. Despite plans to offload some significant assets, Guinness is notably not on the chopping block. CEO Debra Crew reaffirmed that 'nothing has changed' regarding the status of the stout powerhouse—Guinness remains central to Diageo's portfolio. This decision reflects Guinness's continued commercial strength, especially in markets like Britain and Ireland. That expansion is taking physical shape in the form of a £73 million investment into Guinness at Old Brewer's Yard, a massive brewery and visitor experience slated to open in London's Covent Garden by the end of 2025. The project, originally delayed by the collapse of the lead contractor, marks the return of brewing to the area for the first time since 1905. The new Open Gate Brewery in London will join sister sites in Dublin, Baltimore, and Chicago. It's expected to attract up to half a million visitors annually and create 250 jobs across a 54,000-square-foot site. While traditional Guinness won't be brewed there (all European Guinness continues to be produced in Dublin), the microbrewery will craft more than a dozen limited-edition beers, including low-alcohol options under head brewer Hollie Stephenson. Beyond beer, it will feature multiple dining options and serve as the southern British base for Diageo's Learning for Life hospitality training programme, teaching over 100 bartenders each year. Despite supply chain issues that caused temporary shortages in London pubs last Christmas, Guinness remains one of the most in-demand beers in the UK, currently number two, just behind San Miguel. Current estimates suggest that one in every ten pints pulled in London is for Guinness. See More: Business, Covent Garden, Guinness
Scottish Sun
21-05-2025
- Business
- Scottish Sun
UK's only Guinness attraction to open in time for Christmas party season
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) LONDON'S Guinness microbrewery is a step closer to opening, as a launch date is announced. The new Guinness venue will be located in Covent Garden, next to the iconic Stanford's bookshop. Sign up for Scottish Sun newsletter Sign up 3 The venue was first announced in 2022 Credit: DIAGEO/GUINNESS 3 It will be located close to Covent Garden Credit: DIAGEO/Guinness The venue is now expected to open in the run up to Christmas this year. The brewery was originally announced back in 2022 - however, since then it Guinness has spiked in demand, with some pubs in the capital having to hand out ration cards for the drink. Officially called The Open Gate Brewery, the build for the venue has cost £73million. It is located on a historic site that first produced beer over 300 years ago. In total, the venue spans 50,000-square-foot, across five buildings and will feature events spaces, a rooftop with panoramic views, a merch shop and a microbrewery serving up 14 limited edition brews. There will also be no and low alcohol options. Guinness itself however, will not be brewed on site as all the Guinness produced for Europe is brewed in Dublin. The venue will also boast three different food spots including a food truck, brasserie and grill and a seafood restaurant on the rooftop. Guinness hopes that the free-to-enter destination will attract half a million visitors in its first year. The destination will be open from 9:30am to 11:30pm each day, with paid tours available in the early evenings. Why Guinness tastes better in Ireland This will be the fourth site for the drink brand, with other locations in Dublin, Baltimore and Chicago. According to The Standard, the venue will also become the southern UK hub of Diageo's Learning for Life Bartending and Hospitality programme. The programme aims for over 100 London based students to graduate from the 'Guinness at Old Brewer's Yard' programme annually. Brewing originally took place at the site from 1722 to 1905. Beers originally produced at the brewery included the aged brown beers, which became knowns as 'Stout Porter' before the name was eventually shortened to 'stout'. Last year, another popular drink brand - Heineken - announced it would reopen 62 popular British pubs with £39million investment injection. Plus, the UK's highest pub with insane countryside views set to open new beer garden.
The Irish Sun
21-05-2025
- Business
- The Irish Sun
UK's only Guinness attraction to open in time for Christmas party season
LONDON'S Guinness microbrewery is a step closer to opening, as a launch date is announced. The new Guinness venue will be located in Covent Garden, next to the iconic Stanford's bookshop. Advertisement 3 The venue was first announced in 2022 Credit: DIAGEO/GUINNESS 3 It will be located close to Covent Garden Credit: DIAGEO/Guinness The venue is now expected to open in the run up to Christmas this year. The brewery was originally announced back in 2022 - however, since then it Guinness has spiked in demand, with some pubs in the capital having to hand out ration cards for the drink. Officially called The Open Gate Brewery, the build for the It is located on a historic site that first produced beer over 300 years ago. Advertisement Read more on breweries In total, the venue spans 50,000-square-foot, across five buildings and will feature events spaces, a There will also be no and low alcohol options. Guinness itself however, will not be brewed on site as all the Guinness produced for Europe is brewed in Dublin. The venue will also boast three different food spots including a food truck, brasserie and grill and a seafood restaurant on the rooftop. Advertisement Most read in News Travel Guinness hopes that the free-to-enter destination will attract half a million visitors in its first year. The destination will be open from 9:30am to 11:30pm each day, with paid tours available in the early evenings. Why Guinness tastes better in Ireland This will be the fourth site for the drink brand, with other locations in Dublin, Baltimore and Chicago. According to Advertisement The programme aims for over 100 London based students to graduate from the 'Guinness at Old Brewer's Yard' programme annually. Brewing originally took place at the site from 1722 to 1905. Beers originally produced at the brewery included the aged brown beers, which became knowns as 'Stout Porter' before the name was eventually shortened to 'stout'. Last year, another popular drink brand - Heineken - announced it would reopen 62 popular British pubs with £39million investment injection. Advertisement Plus, the 3 Tours will be available, as well as 14 limited edition brews Credit: Not known, clear with picture desk
The Journal
19-05-2025
- Business
- The Journal
Guinness maker Diageo expects US tariffs to cost the company around €133m a year
DRINKS GIANT DIAGEO has warned that it expects US trade tariffs to cost the company around $150 million (€133 million) each year as it launched a major cost-cutting plan. The Guinness and Johnnie Walker maker said it would be impacted by a 10% tariff on European and UK imports into the US, after President Donald Trump launched a raft of tariffs last month. It said it believes its current plans will mitigate around half of the impact of these higher costs on its profit and it will work on further measures to offset the impact. However, it reflects an improving outlook after Diageo said in February that it was bracing for a $200 million (€178 million) hit to profits from tariffs. The firm was set to face a significant knock from proposed tariffs on US imports from Canada and Mexico, but was buoyed by an exemption on alcoholic drinks in March. Diageo also stressed today that it will not be affected by tariffs between the US and China. It came as the company launched a $500 million (€445 million) cost-saving programme, in order to support further investment and improving its leverage. Advertisement The London-listed firm, which also makes Baileys and Gordon's gin, said it will shift to 'a more agile global operating model' as it seeks to improve its cash flow. Meanwhile, the company reported that net sales grew by 2.9% to $4.37 billion (€3.89 billion) for the three months to 31 March, amid a boost from continued strong Guinness sales. In Europe, sales dipped 1.3% for the quarter as higher Guinness sales were offset 'further softness' in spirits across key markets. Organic spirit sales were weaker year-on-year in the region, despite increased demand for tequila. However, sales in North America grew by 5.9% amid strong shipments of US spirits. Debra Crew, chief executive of Diageo, said: 'In the third quarter we delivered strong organic net sales growth and are on track to deliver on our guidance of sequential improvement in organic net sales performance in the second half of fiscal 2025. 'We also reiterated our organic operating profit outlook for fiscal 2025, including the impact of tariffs based on what we know at this time. 'We continue to believe in the attractive long-term fundamentals of our industry and in our ability to outperform the market. 'We view the near-term industry pressure as largely macro-economic driven, with continued uncertainty impacting both the timing and pace of recovery.'
